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Stanley Electric Co Ltd (JP:6923)
:6923
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Stanley Electric Co (6923) AI Stock Analysis

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Stanley Electric Co

(OTC:6923)

Rating:81Outperform
Price Target:
Stanley Electric Co receives a robust overall score, driven primarily by its strong financial performance characterized by consistent revenue growth and profitability. The technical analysis also supports positive momentum, though caution is noted with potential overbought conditions. The valuation is appealing with a reasonable P/E ratio and a solid dividend yield.

Stanley Electric Co (6923) vs. iShares MSCI Japan ETF (EWJ)

Stanley Electric Co Business Overview & Revenue Model

Company DescriptionStanley Electric Co., Ltd. (6923) is a Japanese company primarily engaged in the manufacturing and sale of automotive lighting equipment and other electronic components. With a strong focus on innovation and quality, the company develops and produces a wide range of products, including headlamps, rear combination lamps, and other automotive lighting systems, as well as electronic components such as sensors and control units. Stanley Electric is committed to advancing technology in the automotive sector, contributing to safer and more efficient vehicle systems.
How the Company Makes MoneyStanley Electric Co. makes money through the design, production, and sale of automotive lighting equipment and electronic components. The company's revenue model is primarily based on business-to-business transactions with automobile manufacturers, where it supplies lighting systems and electronic parts that are integral to vehicle safety and functionality. Key revenue streams include sales of headlamps, rear lamps, and other specialized lighting products to major automotive companies globally. Additionally, Stanley Electric benefits from strategic partnerships and collaborations with car manufacturers, which help secure long-term contracts and consistent revenue flow. The company also invests in research and development to innovate and meet the evolving demands of the automotive industry, further enhancing its market position and profitability.

Stanley Electric Co Financial Statement Overview

Summary
Stanley Electric Co demonstrates strong financial health with consistent revenue growth and improved profitability margins. The company's low leverage and high equity ratios underscore its solid financial position. While there is a decline in free cash flow, robust operational cash flow management ensures sufficient liquidity.
Income Statement
89
Very Positive
Stanley Electric Co shows strong financial performance with consistent revenue growth, evidenced by a revenue increase from 472.4 billion to 509.6 billion yen, marking a growth rate of 7.9%. The gross profit margin improved to 20.7%, and the net profit margin rose to 6.3%, indicating enhanced profitability. Furthermore, the EBIT and EBITDA margins increased to 9.6% and 19.1%, respectively, showcasing strong operational efficiency.
Balance Sheet
85
Very Positive
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.09, reflecting conservative leverage. An increase in total assets to 749.6 billion yen and a high equity ratio of 64.8% underscore financial stability. Additionally, the return on equity stands at 6.6%, indicating effective management of shareholder investments.
Cash Flow
82
Very Positive
Stanley Electric Co's cash flow statement demonstrates robust operational cash flow, with a strong operating cash flow to net income ratio of 2.08. However, free cash flow decreased from 38.5 billion to 22.8 billion yen, a decline of 40.7%, suggesting potential challenges in liquidity management. Despite this, the company maintains a healthy free cash flow to net income ratio of 0.71, ensuring adequate cash generation.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue509.56B472.40B437.79B382.56B359.71B
Gross Profit105.67B82.89B81.27B70.88B74.97B
EBITDA97.14B80.24B76.28B64.06B69.33B
Net Income32.06B26.50B26.50B21.45B22.92B
Balance Sheet
Total Assets749.61B708.26B629.61B585.38B541.02B
Cash, Cash Equivalents and Short-Term Investments219.61B198.64B173.41B150.75B138.58B
Total Debt44.58B14.28B14.17B12.58B12.72B
Total Liabilities150.69B118.90B93.48B96.42B96.37B
Stockholders Equity485.89B524.80B476.64B434.94B399.63B
Cash Flow
Free Cash Flow22.79B38.45B40.01B7.98B15.45B
Operating Cash Flow66.58B65.55B76.28B36.88B46.64B
Investing Cash Flow-64.87B-31.56B-56.43B-20.26B-41.65B
Financing Cash Flow-19.97B-25.95B-3.82B-13.48B-13.02B

Stanley Electric Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2802.50
Price Trends
50DMA
2795.50
Positive
100DMA
2709.33
Positive
200DMA
2640.66
Positive
Market Momentum
MACD
12.42
Positive
RSI
44.10
Neutral
STOCH
23.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6923, the sentiment is Neutral. The current price of 2802.5 is below the 20-day moving average (MA) of 2852.63, above the 50-day MA of 2795.50, and above the 200-day MA of 2640.66, indicating a neutral trend. The MACD of 12.42 indicates Positive momentum. The RSI at 44.10 is Neutral, neither overbought nor oversold. The STOCH value of 23.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6923.

Stanley Electric Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$424.45B13.846.26%2.46%7.87%27.28%
80
Outperform
¥87.18B14.36
3.31%1.29%20.18%
76
Outperform
$558.30B11.597.02%3.09%-3.53%22.33%
74
Outperform
¥15.73B7.18
2.92%-5.40%
73
Outperform
¥108.57B8.09
3.97%7.29%13.03%
68
Neutral
€35.81B7.626.95%3.63%-10.60%-27.09%
63
Neutral
$17.14B11.11-7.24%3.14%1.68%-25.43%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6923
Stanley Electric Co
2,802.50
57.10
2.08%
JP:7266
Imasen Electric Industrial Co., Ltd.
682.00
93.36
15.86%
JP:7283
Aisan Industry Co., Ltd.
1,713.00
441.70
34.74%
JP:7287
Nippon Seiki Co., Ltd.
1,509.00
156.39
11.56%
JP:7244
Ichikoh Industries,Ltd.
372.00
-108.50
-22.58%
JP:7276
Koito Manufacturing Co
1,810.50
-331.84
-15.49%

Stanley Electric Co Corporate Events

Stanley Electric and Mitsubishi Electric Mobility Form Joint Venture for Next-Gen Vehicle Lamp Systems
Jul 18, 2025

Stanley Electric Co., Ltd. has entered into a Basic Integration Agreement with Mitsubishi Electric Mobility Corporation to establish a joint venture for the lamp system business for next-generation vehicles. This strategic move is expected to enhance their market positioning in the automotive sector by focusing on electronic and control components for advanced vehicle lighting systems.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3200.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Completes Treasury Stock Disposal for Director Compensation
Jul 10, 2025

Stanley Electric Co., Ltd. has completed the payment procedures for the disposal of 32,100 shares of its treasury stock as restricted stock compensation. This move, resolved by the Board of Directors, involves a total transaction value of 90,329,400 yen and is aimed at compensating six of its directors, excluding outside directors, which may impact the company’s financial structuring and executive incentives.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Announces Disposal of Treasury Stock for Director Compensation
Jun 25, 2025

Stanley Electric Co., Ltd. announced its decision to dispose of 32,100 shares of treasury stock as restricted stock compensation for six directors, excluding outside directors. This move aims to enhance director motivation and align their interests with shareholder value, as part of a broader compensation plan approved at the company’s recent general meeting. The initiative reflects Stanley Electric’s commitment to boosting corporate value and maintaining competitive positioning in the market.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3000.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Co. Announces Treasury Stock Disposal for Employee Incentive Plan
Jun 23, 2025

Stanley Electric Co., Ltd. announced its decision to dispose of treasury stock as part of an incentive plan aimed at motivating executive officers, operating officers, and employees by aligning their interests with shareholder value. This move is designed to enhance corporate value and boost the company’s stock price by granting restricted stock compensation to eligible employees, with a transfer restriction period set until June 2028.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Revises FY2025/3 Financial Results and Announces Record Shareholder Returns
Jun 19, 2025

Stanley Electric Co., Ltd. announced a correction to its FY2025/3 financial results, highlighting adjustments in shareholder returns and treasury stock purchases. The company has approved a significant treasury stock purchase of 80 billion yen, aiming to reduce equity capital and improve return on equity (ROE), while planning a record high 92 billion yen in shareholder returns through dividends and stock buybacks.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Co. Releases FY2025/3 Financial Results
Jun 18, 2025

Stanley Electric Co., Ltd. has released its financial results for FY2025/3, outlining its strategic initiatives and business strategies under its VIII Three-year Medium-term Management Plan. The company aims to enhance corporate value and has provided forecasts for the upcoming fiscal year, indicating its focus on strengthening its market position and operational efficiency.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Announces Major Treasury Stock Purchase Plan
Jun 10, 2025

Stanley Electric Co., Ltd. has announced a decision by its Board of Directors to purchase up to 35,000,000 shares of its common stock, representing 23.47% of the total shares issued and outstanding, excluding treasury stock. This move, with a budget of up to 80 billion yen, aims to enhance shareholder returns and improve capital efficiency, potentially impacting the company’s financial structure and market positioning.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Announces Revised Earnings and Dividend Forecasts
Jun 10, 2025

Stanley Electric Co., Ltd. has announced its earnings and dividend forecasts for the fiscal year ending March 31, 2026. The company anticipates a decrease in net sales and profits compared to the previous year, attributing the revisions to external factors such as U.S. trade policies and foreign exchange fluctuations. Despite these challenges, Stanley Electric remains committed to enhancing corporate value and minimizing the impact of environmental changes. Additionally, the company plans to increase its dividend payout, reflecting a focus on providing stable returns to shareholders.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Co. Enhances Internal Control Policies
May 20, 2025

Stanley Electric Co., Ltd. has announced a partial amendment to its ‘Basic Policies Regarding the Establishment of Internal Control System’ to enhance corporate governance and operational efficiency. The changes include strengthening legal compliance frameworks, improving risk management systems, and ensuring efficient execution of duties by directors and employees. These amendments aim to bolster the company’s internal controls, risk management, and corporate ethics, potentially improving stakeholder confidence and operational integrity.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Announces Dividend Distribution for Fiscal Year 2025
May 20, 2025

Stanley Electric Co., Ltd. announced a dividend distribution from retained earnings, with a dividend of 40 yen per share for the fiscal year ending March 31, 2025. This decision aligns with the company’s financial strategy to maintain stable dividends and achieve a consolidated dividend payout ratio of 30% or more, reflecting a commitment to providing appropriate profit returns to shareholders.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Achieves Record Sales Amid Global Expansion
Apr 25, 2025

Stanley Electric Co., Ltd. reported record-high net sales of 509.56 billion yen for FY2025/3, marking a 7.9% increase from the previous year. This growth was driven by strong performance in the Americas and Asia, particularly in the motorcycle segment, and the consolidation of Thai Stanley Electric Public Co., Ltd. Despite challenges such as weak Japanese automobile sales in China and Asia, the company minimized impacts through structural improvements and rationalization efforts.

Stanley Electric and Mitsubishi Electric Mobility Form Joint Venture for Next-Gen Vehicle Lamp Systems
Apr 24, 2025

Stanley Electric Co., Ltd. and Mitsubishi Electric Mobility Corporation have signed an integration agreement to establish a joint venture for the lamp system business targeting next-generation vehicles. This joint venture aims to leverage the strengths of both companies to develop high-value-added products that contribute to a sustainable society with zero traffic fatalities. The integration involves an absorption-type company split, with operations expected to commence in the first half of fiscal year 2025, pending regulatory clearances.

Stanley Electric Revises Shareholder Return Policy for Enhanced Capital Efficiency
Apr 24, 2025

Stanley Electric Co., Ltd. announced a change in its shareholder return policy to enhance capital efficiency. The new policy aims to provide stable dividends with a dividend on equity ratio of 3.5% or a target consolidated dividend payout ratio of 40%, whichever is higher, effective from the fiscal year ending March 31, 2026. This change reflects the company’s focus on optimizing shareholder returns while maintaining a strong financial structure.

Stanley Electric Revises Dividend Forecast for Fiscal Year 2025
Apr 24, 2025

Stanley Electric Co., Ltd. announced a revision of its dividend forecast for the fiscal year ended March 2025, increasing the year-end dividend per share by 8 yen to 40 yen, resulting in an annual dividend of 72 yen per share. This decision aligns with the company’s financial strategy to maintain stable dividends and ensure appropriate profit distribution, reflecting recent performance trends and a solid financial position.

Stanley Electric Co. Reports Strong Financial Growth and Strategic Dividend Policy Revision
Apr 24, 2025

Stanley Electric Co., Ltd. reported a notable increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 7.9% and operating profit increasing by 36.7%. The company also announced a revised dividend policy to enhance shareholder returns, reflecting a focus on stability and capital efficiency. The inclusion of Thai Stanley Electric Public Co., Ltd. in its consolidation scope indicates strategic expansion, while the company remains cautious about future forecasts due to potential impacts from U.S. trade dynamics.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025